!!!Bank für Arbeit und Wirtschaft AG, BAWAG

Bank fuer Arbeit und Wirtschaft AG, BAWAG, principal shareholders are 
the Austrian Federation of Trade Unions and Bayerische Landesbank, 
which took over the shares of Konsum Oesterreich after the latter's 
bankruptcy in 1995. With a balance sheet total of 267 thousand million 
ATS (figures from 1998), 2,500 staff and 154 branch offices, the bank 
figures among Austria´s biggest universal banks.

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When the bank was founded in 1922 by K.  Renner as "Arbeiterbank", its 
purpose was to combine and administer the finances of trade unions and 
 consumer cooperatives. Even though business developed favourably 
during the world-wide economic crisis, the bank was wound up for 
political reasons in 1934.

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In 1947 the bank was newly founded and then slowly started developing 
spheres of business other than its original one. The bank´s name 
was changed to "Bank fuer Arbeit und Wirtschaft" (i.e. "Bank for 
Labour and Business") in 1963 to demonstrate publicly the 
re-orientation of its business policy. However, the bank continued to 
concentrate its business on providing extensive financial services for 
persons in dependent employment. Specialised products were developed 
for this target group, such as the Barzustellungskredit (BZK), a type 
of loan which is administered by the works council. In the savings 
sector, the Kapitalsparbuch (capital passbook) was a great success. Up 
to the year 1979, BAWAG was restricted in its expansion by a banking 
law which required a licence to be obtained for every single branch 
office that was opened. BAWAG therefore had only 26 branch offices in 
1977. Since the law was amended in 1979, the bank has opened over 120 
new offices and started a new offensive in commercial and 
international business. Due to its sound primary money base, the bank 
has been able to significantly expand its credit business with private 
business. Innovative products and services are also offered in the 
securities and electronic banking sectors. Partnership with the 
Bayerische Landesbank has contributed to the BAWAG's intensifying its 
international business with the Central and Eastern European countries 
on Austrian borders as well as with Hongkong.


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